1/3 of a timing belt

[Vanagoner]

finally got time to get into my caddy project.  When I took the belt cover off, I saw what was left of the belt (1/3 the original width) running around the outside edge of the pulleys, the rest was turned to fuzz in the cover.  Thank God it held-  the engine seems fine.
What was left of it seemed too tight- the amount of turn I got from it is what I'd expect a new belt to have on it.  I fear for my Int. shaft bearings...  The tensioner looks old as well.  ...the receipt from the name brand oil change shop 1500 miles ago says "timing belt checks ok"...  yeah right, I'm sure they checked that one out real good.
    My question is, what should I expect to have to do when I put my new belt and tensioner in to remedy the tracking problem?  or is this the result of over-tightening and /or a bad tensioner?

[CoolAirVw]

Put the new belt on and see how it tracks.If its not off alot you can "bend" the bracket that holds the IP.  

Loosen the vertical bolt on the small 90 degree bracket, that has 2 bolt holes, between the alternator and the IP. The hole for the vertical bolt has a "slot" for adjustment. Then pry the IP to correct the tracking problem and tighten the bracket.

Make sure the intermediate pulley doesn't have chips out of the edges of it.